Acolyance: Applying MDM to Drive ERP Success & ROI

Acolyance (€522M+revenues) is a leading French agriculture and wine cooperative serving a network of 3,500 agriculture members and 7,000 wine producers. Management is very focused on innovation and is preparing a large-scale transformation for 2014 wherein ERP will be deployed to support most of business processes (finance, accounting, harvest, retailing, procurement, sales, …). Unlike traditional viewpoints with ERP systems as the solution to manage all master data within their perimeter because they were intended to be *the* company core system, Acolyance has decided to make its master data program a prerequisite of its ERP implementation. By having an MDM approach synchronized with the ERP strategy, Acolyance is convinced that ERP will be able to concentrate on its core business processes and to deliver quicker and better. Additionally, MDM enlarges the ERP scope by facilitating collaboration with trading partners. In this session, topics to be discussed include:

- Applying MDM as a key approach to secure ERP implementation projects
- Leveraging MDM to fill in functional weaknesses of ERP systems
- Using MDM to facilitate the update cycle of master data that cannot be updated directly in production systems without ERP customization

10.
Business Case 1: Party
Context
• Context
– Low data quality : missing business rules in business applications
– Very distributed and shared data
– No semantic alignment
– Lack of productivity (manual update into multiple systems)
– A central data administration team is in place (keyboarding work)
– History of merging acquisition with other companies.
• heterogeneous IT system that manages parties
• Main stakes
– Have a unique shared version of Parties at a central level
– Gain in productivity
– Enhance data quality
– Be prepared for coming merging and acquisition
Applying MDM to drive ERP Success and ROI

11.
Each third party can have different activities with Acolyance
Each activity can be done within multiple legal entities
One legal entity can be related to different roles of the same third party
i
Business Case 1: Party
Third party modeling
Third party Farmer
Supplier
Legal Entity
2
.
.
.
Is Within Legal Entity
1
Legal Entity
2
Legal Entity
N
Within
Retail
customer
Within
Farmer Retail
customer
Supplier
Applying MDM to drive ERP Success and ROI
MDM
Project
Current Target

14.
Business Case 1: Party
Synthesis
Applying MDM to drive ERP Success and ROI
Single source system for Parties master data (Migration + Run mode)
No worries about data quality as it is already enhanced with MDM
Ease ERP integration with the rest of the IT system
Use the MDM to prepare bigger change with ERP
Benefits for ERP Project
Central admin team up & running
Business and IT drive the project together
Key Success Factor

16.
Business Case 2: Product
Current Context
• Each business activity has its own silo on organizational and applicative levels
• Lack of communication between silos
– Seeds, Cereals and Farmer supplies share product data
– Few shared product between Retail and Farmer Supplies & Services
• No unified business classification
– impact on reporting
• A huge number of suppliers for Retail and farmer Supplies & Services
– Opportunity to have a pre-referencing process
• No dedicated organization in any business activity for data management
• Low data quality level
Cereals Seeds Retail
Farmer
Supply &
services
Applying MDM to drive ERP Success and ROI

17.
Business Case 2: Product
The ERP Project brings its own challenges
Applying MDM to drive ERP Success and ROI
ERP does not cover all
Acolyance activities
How to insure Seeds activity
communication with ERP based activities?
Three Years transformation
program
How to secure business processes
continuity?
Recasting of Business Process &
Organization across Business
services
How to insure functional coordination
between activities?
?
Master data Management appeared to be a hot topic for the ERP Project
2 sensitive questions raised:
Could we manage Product data within ERP?
Do we really need to deploy MDM on Products?

18.
Business Case 2: Product
Possible architecture for Product MDM
Applying MDM to drive ERP Success and ROI
One system for business users
Leverage Product data model
embedded in the ERP
Process for data management
Version management
Toolbox for business rules
Built-in interfaces for data
acquisition and distribution
MDM MasterERP Master

29.
Are you sure ERP project has planned to
allocate enough workforce to Master Data?
Enhance your team maturity with MDM: get
them prepared to ERP workshops
Benefit from existing MDM organization to
get answers about data and already defined
transversal roles
MDM as an ERP Success Driver
MDM initiative Key Benefits to ERP Programs
Applying MDM to drive ERP Success and ROI
Project team maturity
Consider highly sensitive topics from the
beginning of the ERP Project
Prevent ERP project from having to deal
with other system master data constraints
Prepare master data migration
Ease integration with existing IT system &
deployment phase
Guarantee semantic alignment between
ERP and existing system
Anticipate constraints related to ERP data
Prepare X-references
Risk Mitigation

30.
Because Third Parties have their own Master
Data …
Let external partners update their own data
Pre-referencing their product
Ease compliance with regulation constraints
and facilitate reporting to control agency
MDM as an ERP Success Driver
MDM initiative Key Benefits to ERP Programs
Applying MDM to drive ERP Success and ROI
Third-Parties
collaboration
Do you have to wait to deploy your ERP to a
new structure to be able to leverage its assets?
New activities and new product catalogs
New customers database
…
Facilitate external
growth

36.
Feedbacks on our MDM Project
Key Success Factor for ERP & MDM program
Applying MDM to drive ERP Success and ROI
Address as a program, not as several projects1
Change Management2
Data migration3
Appropriate sizing & organization of IT Team4
MDM is not just a tool, it’s about having a strategy for
master data management across the IT system5

37.
Applying MDM to drive ERP Success and ROI
Thank You!
We will be at Orchestra Networks booth to answer your
questions!